I have unpaid property taxes since 2005 and im about to give back the property. who pays the taxes?

Rita C asked:

I bought my house in 2005 and haven’t paid my property taxes since. Im getting ready to return the property to the bank because i cant afford my payment, so i was wondering if im gonna have to pay back all the property taxes i owe? i am not in pre forclosure or foreclosure yet.
Also how does returning the property and foreclosure affect my credit record and for how long?

Comments (3) Posted in United States

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3 Responses to 'I have unpaid property taxes since 2005 and im about to give back the property. who pays the taxes?'

ninasgramma - May 16th, 2009 at 1:47 am
Once the banks accepts the property in lieu of foreclosure, the property is no longer yours and you would not pay the back taxes. The proceeds of the sale of the house would be used to pay back the debt on the house, including back taxes.

If the sale of the house does not cover the debt, you may receive a 1099C from your bank for cancellation of debt in the amount of the shortfall. This will be included in your taxable income for the year of cancellation, unless an exception applies.

The cancellation of debt will adversely affect your credit rating. The information will stay on your credit report generally seven years.
wartz - May 17th, 2009 at 6:59 am
The property tax follows the property not the owner so it will become the bank’s problem.
DeeDee - May 17th, 2009 at 7:24 pm
first two answers are correct; however, if your state has personal property tax along with property tax, unpaid amounts will follow the person too and affix against any other real property you own or purchase.